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Automobile major Mahindra & Mahindra launched the country's first zero-emission electric cargo or passenger van, the eSupro, at Rs 8.45-8.75 lakh (ex-showroom, Delhi). Prices in other states will depend on local taxes and subsidies.

The company has tied up with online grocery retailer BigBasket to deliver 50 cargo vehicles initially. "The retail market is getting reorganised with the advent of the e-commerce grocery business. We believe these are the right products for last-mile delivery," said Pravin Shah, president and chief executive (automotive) at M&M.

The two vehicles launched on Thursday are targeted at intra-city transportation, of goods and passengers. Running on a rechargeable lithium ion battery, both can run for 112 km upon a full charge. The company said the operating cost of both these vehicles would be less than half, compared to fossil fuel vehicles.

“The launch will usher in a whole new concept in emission-free cargo transportation and people movement,” said Shah.

The battery takes eight hours and 45 minutes for a full charge. It would have a top speed of 60 km an hour. “In other markets, it would cost more, as the Delhi price includes the FAME subsidy given by the government for electric vehicles," he said.

The company would first concentrate on metropolitan cities and then go to tier-II markets, said Shah. This is the third electric vehicle from the Mahindra stable, after the e2o and the eVerito.